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I Got an IRS Letter! Now What?

Audio version available here (1 min. 45 sec.)

With the IRS’s unusually high budget of $80 billion finally being put to use, enforcement efforts are on the rise, and that can mean a higher possibility of being sent a letter from the IRS. But don’t panic if you do receive a letter. Instead, follow these tips.

There are many reasons the IRS may send you a letter, so you shouldn’t automatically assume you are being audited. Understanding what the IRS seeks from you is the easiest way to resolve any potential issues quickly and without further escalation. Some of the reasons the IRS may send you a letter is if:

  • “You have a balance due

  • Your refund has changed

  • [They] have a question about your return

  • [They] need to verify your identity

  • [They] changed or corrected your return

  • [They’re] delayed in processing your return”

If the IRS does require further action from you, the letter will typically come with specific instructions on what needs to be provided or amended and when it’s due by. Usually, this can happen if you have an outstanding tax balance that needs to be paid. If this is the case, pay the balance as soon as possible, as the Failure to Pay penalty can quickly add up.

It’s important to remember that there are scammers out there who may try targeting you. One easy way to know if you are being scammed is if you receive a text or email rather than a letter. The only sort of online communication the IRS engages in is through an IRS Online Account. Never give your personal information to a communication source you cannot trust.

If you do receive an official IRS letter, or suspect you have received a scam, a smart thing to do before you respond or take further action is to reach out to a CPA for guidance. They can advise you on if the letter is genuine and what action, if any, to take. Occasionally, it may be in your interest to dispute the letter. It’s best to do this with a CPA by your side, so reach out to XQ CPA’s tax experts if you are in need of guidance. We are here to help you.

Phone: 832-295-3353

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Want to pay less taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.

Stack on pennis and roll of $100 bills sit on a brown wooden table, text in bold letters says "IRS Internal Revenue Service" in background


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